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IMA CMA Part 2: Strategic Financial Management Exam Sample Questions (Q104-Q109):

NEW QUESTION # 104
A company produces 10,000 units of Product A monthly at the costs shown below.
CMA-Strategic-Financial-Management-901fe5584a92fd8c0777cd78ead00bbf.jpg
The company estimates that 30% of the fixed overhead costs allocated to Product A are avoidable if the company chooses to outsource the production If the company purchases Product A from an outside supplier for $18 per unit what would be the net effect on its operating income?

  • A. $5,00C
  • B. ($5,000)
  • C. $23,000
  • D. ($17,000)

Answer: B


NEW QUESTION # 105
A corporation shows the following on its financial statements (in millions).
CMA-Strategic-Financial-Management-d75c5e1558c63c53ca5265d0efada33c.jpg
The corporation has a financial leverage ratio of

  • A. 0.06
  • B. 2.00
  • C. 3.60
  • D. 0.50

Answer: D


NEW QUESTION # 106
A risk with a high frequency of occurrence but with a low impact, is best managed by which one of the following risk response strategies?

  • A. Risk reduction
  • B. Risk transfer
  • C. Risk avoidance
  • D. Risk acceptance

Answer: A


NEW QUESTION # 107
Which one of the following statements regarding portfolio diversification is not correct?

  • A. A well diversified portfolio can eliminate systematic risk.
  • B. The standard deviation of a well diversified portfolio's percentage returns should be approximately equal to the standard deviation of the entire stock market's percentage returns.
  • C. A well diversified portfolio should include individual stock investments having a balance of positive and negative betas.
  • D. A well diversified portfolio can minimize unsystematic risk

Answer: A


NEW QUESTION # 108
The internal audit division of a company is investigating a potential fraud in the Accounts Payable department Someone in the department has been writing checks to fictitious vendors and collecting the cash The primary suspect Is an employee who has own with the company for twelve years and recently lost his Did for promotion to Director of Accounts Payable a position which would have given mm a 25% salary increase This employee has been heard complaining to several other employees in the department that he was cheated out of his raise. Which one of the following elements of the fraud triangle is this employee exhibiting?

  • A. Rationalization
  • B. Opportunity
  • C. Pressure
  • D. Motive

Answer: A


NEW QUESTION # 109
......

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